The Delhi Bench of the National Company Law Tribunal (NCLT) on Wednesday accepted Go First’s insolvency plea, resulting in the airline being put under a moratorium in accordance with the Insolvency and Bankruptcy Code (IBC).
“The application of the Corporate Applicant (Go First) is admitted. As a necessary consequence, the moratorium in terms of Section 14(1) (a), (b), (c) & (d) is declared,” the order said. All or certain legal remedies against debtors are suspended during a moratorium. This means that lessors of Go First will not be able to take possession of the aircraft.
